Under this programme demonstration projects funded on a large scale will for the first time show how progressive processes for avoidance or reduction of adverse effects on the environment can be realised. The objectives are progressive development of the environmental legislation and of the state of technology together with promotion of measures with a high demonstrative effect and resulting disseminator effect. In addition to this the demonstration projects are intended to highlight opportunities for manufacturing and using environmentally compatible products and environmentally-friendly substitute materials. Priority for funding is given to SMEs. As a rule the BMU grants an interest subsidy on a loan from the KfW banking group.